You are a marketing manager for Sunflower Company, a company that produces and distributes a popular brand of lawn mowers. As part of the company's efforts to remain competitive, a study is implemented to examine factors that drive the sales of lawn mowers.

Instructions:

• Assume that the first study that was conducted examined the relationship between the sales levels of Sunflower riding lawn mowers and the price of Sunflower riding lawn mowers. A regression model yielded an R-Square value of 30%. Interpret this analytic. Do you think this statistic indicates that Price is a good predictor of Sales? Justify your answer.
• You direct your market research team to expand the study. Besides Price, suggest at least 2 other predictor variables (independent variables) that could be considered to help explain Sunflower's lawn mower sales. Defend your answer.
• Assume that Sam, a top-notch member of your market research team, approaches you with the findings of an independent research study that reveals that U.S. lawn mower sales is highly correlated with U.S. fireworks sales. Sam believes that this study supports a belief that the consumer purchase of fireworks lead to consumer purchase of lawn mowers. He recommends a marketing campaign that would distribute Sunflower lawn mower coupons at area fireworks points of sale. How would you respond to Sam? Apply regression concepts from Chapter 8 to develop your response to Sam.